1.1 	A bill for an act
1.2 	relating to the environment; proposing an amendment to
1.3 	the Minnesota Constitution, article XI; creating the
1.4 	Clean Water Legacy Act; providing authority,
1.5 	direction, and funding to achieve and maintain water
1.6 	quality standards for Minnesota's surface waters in
1.7 	accordance with section 303(d) of the federal Clean
1.8 	Water Act; modifying soil and water cost-share
1.9 	contract provisions; extending citizen water
1.10 	monitoring; creating a municipal grant program;
1.11 	appropriating money; amending Minnesota Statutes 2004,
1.12 	sections 103C.501, subdivision 5; 115.06, subdivision
1.13 	4; 116.182, subdivision 2; 276.04, subdivision 2;
1.14 	276.112; 290A.03, subdivisions 11, 13; 297A.62,
1.15 	subdivision 1; 297A.94; proposing coding for new law
1.16 	in Minnesota Statutes, chapter 446A; proposing coding
1.17 	for new law as Minnesota Statutes, chapter 114D.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	ARTICLE 1
1.20 	CLEAN WATER LEGACY

1.21 	Section 1. Minnesota Statutes 2004, section 103C.501,
1.22 	subdivision 5, is amended to read:
1.23 		Subd. 5.Contracts by districts.  (a) A district board
1.24 	may contract on a cost-share basis to furnish financial aid to a
1.25 	land occupier or to a state agency for permanent systems for
1.26 	erosion or sedimentation control or water quality improvement
1.27 	that are consistent with the district's comprehensive and annual
1.28 	work plans.
1.29 	(b) The duration of the contract may must, at a minimum,be
1.30 	the time required to complete the planned systems.  A contract
1.31 	must specify that the land occupier is liable for monetary
2.1 	damages, not to exceed the and penalties in an amount of up to
2.2 	150 percent of the financial assistance received from the
2.3 	district, for failure to complete the systems or practices in a
2.4 	timely manner or maintain the systems or practices as specified
2.5 	in the contract.
2.6 	(c) A contract may provide for cooperation or funding with
2.7 	federal agencies.  A land occupier or state agency may provide
2.8 	the cost-sharing portion of the contract through services in
2.9 	kind.
2.10 	(d) The state board or the district board may not furnish
2.11 	any financial aid for practices designed only to increase land
2.12 	productivity.
2.13 	(e) When a district board determines that long-term
2.14 	maintenance of a system or practice is desirable, the board may
2.15 	require that such maintenance be made a covenant upon the land
2.16 	for the effective life of the practice.  A covenant under this
2.17 	subdivision shall be construed in the same manner as a
2.18 	conservation restriction under section 84.65.

2.19 	Sec. 2. [114D.05] CITATION.
2.20 	This chapter may be cited as the "Clean Water Legacy Act." 

2.21 	Sec. 3. [114D.10] LEGISLATIVE PURPOSE.
2.22 	The purpose of the Clean Water Legacy Act is to restore,
2.23 	protect, and preserve the quality of Minnesota's surface waters
2.24 	by providing authority, direction, and resources to restore and
2.25 	maintain water quality standards for surface waters as required
2.26 	by section 303(d) of the federal Clean Water Act, United States
2.27 	Code, title 33, section 1313(d), and applicable federal
2.28 	regulations.

2.29 	Sec. 4. [114D.15] DEFINITIONS.
2.30 		Subdivision 1.Application. The definitions provided in
2.31 	this section apply to the terms used in this chapter.
2.32 		Subd. 2.Citizen monitoring. "Citizen monitoring" means
2.33 	monitoring of surface water quality by individuals and
2.34 	nongovernmental organizations that is consistent with section
2.35 	115.06, subdivision 4, and Pollution Control Agency guidance on
2.36 	monitoring procedures, quality assurance protocols, and data
3.1 	management.
3.2 		Subd. 3.Clean water council. "Clean Water Council" or
3.3 	"council" means the Clean Water Council created pursuant to
3.4 	section 114D.30, subdivision 1.
3.5 		Subd. 4.Federal tmdl requirements. "Federal TMDL
3.6 	requirements" means the requirements of section 303(d) of the
3.7 	Clean Water Act, United States Code, title 33, section 1313(d),
3.8 	and associated regulations and guidance.
3.9 		Subd. 5.Impaired water. "Impaired water" means surface
3.10 	water that does not meet applicable water quality standards.
3.11 		Subd. 6.Public agencies. "Public agencies" means all
3.12 	state agencies, political subdivisions, joint powers
3.13 	organizations, and special purpose units of government with
3.14 	authority, responsibility, or expertise in protecting,
3.15 	restoring, or preserving the quality of surface waters, managing
3.16 	or planning for surface waters and related lands, or financing
3.17 	waters-related projects.  "Public agencies" also includes the
3.18 	University of Minnesota and other public education institutions.
3.19 		Subd. 7.Restoration. "Restoration" means actions,
3.20 	including effectiveness monitoring, that are taken to restore
3.21 	and maintain water quality standards for impaired waters in
3.22 	accordance with a TMDL that has been approved by the United
3.23 	States Environmental Protection Agency under federal TMDL
3.24 	requirements.
3.25 		Subd. 8.Surface waters. "Surface waters" means waters
3.26 	of the state as defined in section 115.01, subdivision 22,
3.27 	excluding groundwater as defined in section 115.01, subdivision
3.28 	6.
3.29 		Subd. 9.Third-party tmdl. "Third-party TMDL" means a
3.30 	TMDL by the Pollution Control Agency that is developed in whole
3.31 	or in part cooperatively between representatives from local
3.32 	units of government where the TMDL is being completed and a
3.33 	qualified public or private nonprofit entity other than the
3.34 	Pollution Control Agency consistent with the goals, policies,
3.35 	and priorities in section 114D.20.
3.36 		Subd. 10.Total maximum daily load or tmdl. "Total
4.1 	maximum daily load" or "TMDL" means a scientific study that
4.2 	contains a calculation of the maximum amount of a pollutant that
4.3 	may be introduced into a surface water and still ensure that
4.4 	applicable water quality standards for that water are restored
4.5 	and maintained.  A TMDL also is the sum of the pollutant load
4.6 	allocations for all sources of the pollutant, including a
4.7 	wasteload allocation for point sources, a load allocation for
4.8 	nonpoint sources and natural background, an allocation for
4.9 	future growth of point and nonpoint sources, and a margin of
4.10 	safety to account for uncertainty about the relationship between
4.11 	pollutant loads and the quality of the receiving surface water.
4.12 	"Natural background" means characteristics of the water body
4.13 	resulting from the multiplicity of factors in nature, including
4.14 	climate and ecosystem dynamics, that affect the physical,
4.15 	chemical, or biological conditions in a water body, but does not
4.16 	include measurable and distinguishable pollution that is
4.17 	attributable to human activity or influence.  A TMDL must take
4.18 	into account seasonal variations.
4.19 		Subd. 11.Tmdl implementation plan. "TMDL implementation
4.20 	plan" means a document detailing restoration activities needed
4.21 	to meet the approved TMDL's pollutant load allocations for point
4.22 	and nonpoint sources.
4.23 		Subd. 12.Water quality standards. "Water quality
4.24 	standards" for Minnesota surface waters are found in Minnesota
4.25 	Rules, chapters 7050 and 7052.

4.26 	Sec. 5. [114D.20] IMPLEMENTATION; COORDINATION; GOALS;
4.27 	POLICIES; AND PRIORITIES.
4.28 		Subdivision 1.Coordination and cooperation. In
4.29 	implementing this chapter, public agencies and private entities
4.30 	shall take into consideration the relevant provisions of local
4.31 	and other applicable water management, conservation, land use,
4.32 	land management, and development plans and programs.  Public
4.33 	agencies with authority for local water management,
4.34 	conservation, land use, land management, and development plans
4.35 	shall take into consideration the manner in which their plans
4.36 	affect the implementation of this chapter.  Public agencies
5.1 	shall identify opportunities to participate and assist in the
5.2 	successful implementation of this chapter, including the funding
5.3 	or technical assistance needs, if any, that may be necessary.
5.4 	In implementing this chapter, public agencies shall endeavor to
5.5 	engage the cooperation of organizations and individuals whose
5.6 	activities affect the quality of surface waters, including point
5.7 	and nonpoint sources of pollution, and who have authority and
5.8 	responsibility for water management, planning, and protection.
5.9 	To the extent practicable, public agencies shall endeavor to
5.10 	enter into formal and informal agreements and arrangements with
5.11 	federal agencies and departments to jointly utilize staff and
5.12 	educational, technical, and financial resources to deliver
5.13 	programs or conduct activities to achieve the intent of this
5.14 	chapter, including efforts under the federal Clean Water Act and
5.15 	other federal farm and soil and water conservation programs.
5.16 		Subd. 2.Goals for implementation. The following goals
5.17 	must guide the implementation of this chapter:
5.18 	(1) to identify impaired waters in accordance with federal
5.19 	TMDL requirements within ten years after the effective date of
5.20 	this section and thereafter to ensure continuing evaluation of
5.21 	surface waters for impairments;
5.22 	(2) to submit TMDL's to the United States Environmental
5.23 	Protection Agency for all impaired waters in a timely manner in
5.24 	accordance with federal TMDL requirements;
5.25 	(3) to set a reasonable time for implementing restoration
5.26 	of each identified impaired water;
5.27 	(4) to provide assistance and incentives to prevent waters
5.28 	from becoming impaired and to improve the quality of waters
5.29 	which are listed as impaired but have no approved TMDL
5.30 	addressing the impairment;
5.31 	(5) to promptly seek the delisting of waters from the
5.32 	impaired waters list when those waters are shown to achieve the
5.33 	designated uses applicable to the waters; and 
5.34 	(6) to achieve compliance with federal Clean Water Act
5.35 	requirements in Minnesota.
5.36 		Subd. 3.Implementation policies. The following policies
6.1 	must guide the implementation of this chapter:
6.2 	(1) develop regional and watershed TMDL's and TMDL
6.3 	implementation plans, and TMDL's and TMDL implementation plans
6.4 	for multiple pollutants, where reasonable and feasible;
6.5 	(2) maximize use of available organizational, technical,
6.6 	and financial resources to perform sampling, monitoring, and
6.7 	other activities to identify impaired waters, including use of
6.8 	citizen monitoring;
6.9 	(3) maximize opportunities for restoration of impaired
6.10 	waters, by prioritizing and targeting of available programmatic,
6.11 	financial, and technical resources and by providing additional
6.12 	state resources to complement and leverage available resources;
6.13 	(4) use existing regulatory authorities to achieve
6.14 	restoration for point and nonpoint sources of pollution where
6.15 	applicable, and promote the development and use of effective
6.16 	nonregulatory measures to address pollution sources for which
6.17 	regulations are not applicable;
6.18 	(5) use restoration methods that have a demonstrated
6.19 	effectiveness in reducing impairments and provide the greatest
6.20 	long-term positive impact on water quality protection and
6.21 	improvement while incorporating innovative approaches on a
6.22 	case-by-case basis;
6.23 	(6) identify for the legislature any innovative approaches
6.24 	that may strengthen or complement existing programs;
6.25 	(7) identify and encourage implementation of measures to
6.26 	prevent waters from becoming impaired and to improve the quality
6.27 	of waters that are listed as impaired but have no approved TMDL
6.28 	addressing the impairment; and 
6.29 	(8) monitor and enforce cost-sharing contracts and impose
6.30 	monetary damages in an amount up to 150 percent of the financial
6.31 	assistance received for failure to comply.
6.32 		Subd. 4.Priorities for identifying impaired waters. The
6.33 	Pollution Control Agency, in accordance with federal TMDL
6.34 	requirements, shall set priorities for identifying impaired
6.35 	waters, giving consideration to:
6.36 	(1) waters where impairments would pose the greatest
7.1 	potential risk to human or aquatic health; and 
7.2 	(2) waters where data developed through public agency or
7.3 	citizen monitoring or other means, provides scientific evidence
7.4 	that an impaired condition exists.
7.5 	Subd. 5.[PRIORITIES FOR PREPARATION OF TMDL'S.] The Clean
7.6 	Water Council shall recommend priorities for scheduling and
7.7 	preparing TMDL's and TMDL implementation plans, taking into
7.8 	account the severity of the impairment, the designated uses of
7.9 	those waters, and other applicable federal TMDL requirements.
7.10 	In recommending priorities, the council shall also give
7.11 	consideration to waters and watersheds:
7.12 	(1) with impairments that pose the greatest potential risk
7.13 	to human health;
7.14 	(2) with impairments that pose the greatest potential risk
7.15 	to aquatic health;
7.16 	(3) where other public agencies and participating
7.17 	organizations and individuals, especially local, basinwide,
7.18 	watershed, or regional agencies or organizations, have
7.19 	demonstrated readiness to assist in carrying out the
7.20 	responsibilities, including availability and organization of
7.21 	human, technical, and financial resources necessary to undertake
7.22 	the work; and 
7.23 	(4) where there is demonstrated coordination and
7.24 	cooperation among cities, counties, watershed districts, and
7.25 	soil and water conservation districts in planning and
7.26 	implementation of activities that will assist in carrying out
7.27 	the responsibilities.
7.28 		Subd. 6.Priorities for restoration of impaired
7.29 	waters. In implementing restoration of impaired waters, in
7.30 	addition to the priority considerations in subdivision 5 the
7.31 	Clean Water Council shall give priority in its recommendations
7.32 	for restoration funding from the clean water legacy account to
7.33 	restoration projects that:
7.34 	(1) coordinate with and utilize existing local authorities
7.35 	and infrastructure for implementation;
7.36 	(2) can be implemented in whole or in part by providing
8.1 	support for existing or ongoing restoration efforts; and 
8.2 	(3) most effectively leverage other sources of restoration
8.3 	funding, including federal, state, local, and private sources of
8.4 	funds; and 
8.5 	(4) show a high potential for early restoration and
8.6 	delisting based upon scientific data developed through public
8.7 	agency or citizen monitoring or other means.
8.8 		Subd. 7.Priorities for funding prevention actions. The
8.9 	Clean Water Council shall apply the priorities applicable under
8.10 	subdivision 6, as far as practicable, when recommending
8.11 	priorities for funding actions to prevent waters from becoming
8.12 	impaired and to improve the quality of waters which are listed
8.13 	as impaired but have no approved TMDL.

8.14 	Sec. 6. [114D.25] ADMINISTRATION; POLLUTION CONTROL
8.15 	AGENCY.
8.16 		Subdivision 1.General duties and authorities. (a) The
8.17 	Pollution Control Agency, in accordance with federal TMDL
8.18 	requirements, shall:  identify impaired waters and propose a
8.19 	list of the waters for review and approval by the United States
8.20 	Environmental Protection Agency; develop and approve TMDL's for
8.21 	listed impaired waters and submit the approved TMDL's to the
8.22 	United State Environmental Protection Agency for final approval;
8.23 	and propose to delist waters from the Environmental Protection
8.24 	Agency impaired waters list.
8.25 	(b) A TMDL must include a statement of the facts and
8.26 	scientific data supporting the TMDL and a list of potential
8.27 	implementation options, including a range of estimates of the
8.28 	cost of implementation and individual wasteload data for any
8.29 	point sources addressed by the TMDL.
8.30 	(c) The implementation information need not be sent to the
8.31 	United States Environmental Protection Agency for review and
8.32 	approval.
8.33 		Subd. 2.Administrative procedures for tmdl
8.34 	approval. The approval of a TMDL by the Pollution Control
8.35 	Agency is a final decision of the agency for purposes of section
8.36 	115.05, and is subject to the contested case procedures of
9.1 	sections 14.57 to 14.62 in accordance with agency procedural
9.2 	rules.  The agency shall not submit an approved TMDL to the
9.3 	United States Environmental Protection Agency until the time for
9.4 	commencing judicial review has run or the judicial review
9.5 	process has been completed.  A TMDL is not subject to the
9.6 	rulemaking requirements of chapter 14, including section 14.386.
9.7 		Subd. 3.Tmdl submittal requirement. Before submitting a
9.8 	TMDL to the United States Environmental Protection Agency, the
9.9 	Pollution Control Agency shall comply with the notice and
9.10 	procedure requirements of this section.  If a contested case
9.11 	proceeding is not required for a proposed TMDL, the agency may
9.12 	submit the TMDL to the United States Environmental Protection
9.13 	Agency no earlier than 30 days after the notice required in
9.14 	subdivision 4.  If a contested case proceeding is required for a
9.15 	TMDL, the TMDL may be submitted to the United States
9.16 	Environmental Protection Agency after the contested case
9.17 	proceeding and appeal process is completed.
9.18 		Subd. 4.Tmdl notice; contents. The Pollution Control
9.19 	Agency shall give notice of its intention to submit a TMDL to
9.20 	the United States Environmental Protection Agency.  The notice
9.21 	must be given by publication in the State Register and by United
9.22 	States mail to persons who have registered their names with the
9.23 	agency.  The notice must include either a copy of the proposed
9.24 	TMDL or an easily readable and understandable description of its
9.25 	nature and effect and an announcement of how free access to the
9.26 	proposed TMDL can be obtained.  In addition, the agency shall
9.27 	make reasonable efforts to notify persons or classes of persons
9.28 	who may be significantly affected by the TMDL by giving notice
9.29 	of its intention in newsletters, newspapers, or other
9.30 	publications, or through other means of communication.  The
9.31 	notice must include a statement informing the public:
9.32 	(1) that the public has 30 days in which to submit comment
9.33 	in support of or in opposition to the proposed TMDL and that
9.34 	comment is encouraged;
9.35 	(2) that each comment should identify the portion of the
9.36 	proposed TMDL addressed, the reason for the comment, and any
10.1 	change proposed;
10.2 	(3) of the manner in which persons must request a contested
10.3 	case proceeding on the proposed TMDL;
10.4 	(4) that the proposed TMDL may be modified if the
10.5 	modifications are supported by the data and views submitted; and 
10.6 	(5) the date on which the 30-day comment period ends.
10.7 		Subd. 5.Third-party tmdl development. The Pollution
10.8 	Control Agency may enter agreements with any qualified public or
10.9 	private nonprofit entity setting forth the terms and conditions
10.10 	under which that entity is authorized to develop a third-party
10.11 	TMDL.  Before entering into an agreement with an entity to
10.12 	develop a third-party TMDL, the Pollution Control Agency must
10.13 	make reasonable efforts to notify cities, counties, townships,
10.14 	soil and water conservation districts, and watershed districts
10.15 	in the area that would be affected by the TMDL.  An agreement
10.16 	with a private nonprofit entity must require active involvement
10.17 	in the process by the Pollution Control Agency and appointment
10.18 	of an advisory committee to provide oversight of the development
10.19 	of the TMDL.  At least 60 percent of the members of the advisory
10.20 	committee must be representatives of local public agencies from
10.21 	the area affected by the TMDL.  In determining whether an entity
10.22 	is qualified to develop a TMDL, the agency shall consider the
10.23 	technical and administrative qualifications of the entity and
10.24 	may not enter into an agreement with a third-party entity that
10.25 	has a conflict of interest with respect to the development of
10.26 	the third-party TMDL.  A TMDL developed by a third party is
10.27 	subject to monitoring, modification, and approval by the
10.28 	Pollution Control Agency, and must be approved by the Pollution
10.29 	Control Agency before it is submitted to the United States
10.30 	Environmental Protection Agency.  Before submitting a TMDL to
10.31 	the Environmental Protection Agency, the Pollution Control
10.32 	Agency must comply with the notice and procedure requirements of
10.33 	subdivision 3.  Approval of a third-party TMDL by the Pollution
10.34 	Control Agency is subject to judicial review and contested case
10.35 	procedures in the same manner as approval of any other TMDL by
10.36 	the Pollution Control Agency.  The Pollution Control Agency
11.1 	shall only consider authorizing the development of TMDL's
11.2 	consistent with the goals, policies, and priorities determined
11.3 	under this section.

11.4 	Sec. 7. [114D.30] CLEAN WATER COUNCIL.
11.5 		Subdivision 1.Creation; duties. A Clean Water Council
11.6 	is created to advise the Pollution Control Agency and other
11.7 	implementing public agencies on the administration and
11.8 	implementation of this chapter, and foster coordination and
11.9 	cooperation as described in section 114D.20, subdivision 1.  The
11.10 	council may also advise on the development of appropriate
11.11 	processes for expert scientific review as described in section
11.12 	114D.35, subdivision 2.  The Pollution Control Agency shall
11.13 	provide administrative support for the council with the support
11.14 	of other member agencies.  The members of the council shall
11.15 	elect a chair from the nonagency members of the council.
11.16 		Subd. 2.Membership; appointment. The governor must
11.17 	appoint the members of the council.  The governor must appoint
11.18 	one person from each of the following agencies:  the Department
11.19 	of Natural Resources, the Department of Agriculture, the
11.20 	Pollution Control Agency, and the Board of Water and Soil
11.21 	Resources.  The governor must appoint 14 additional nonagency
11.22 	members of the council as follows:
11.23 	(1) two members representing statewide farm organizations;
11.24 	(2) two members representing business organizations;
11.25 	(3) two members representing environmental organizations;
11.26 	(4) one member representing soil and water conservation
11.27 	districts;
11.28 	(5) one member representing watershed districts;
11.29 	(6) one member representing nonprofit organizations focused
11.30 	on improvement of Minnesota lakes or streams;
11.31 	(7) one member representing an organization of county
11.32 	governments;
11.33 	(8) two members representing organizations of city
11.34 	governments;
11.35 	(9) one member representing the Metropolitan Council
11.36 	established under section 473.123; and 
12.1 	(10) one member representing an organization of township
12.2 	governments.
12.3 	In making appointments, the governor must attempt to
12.4 	provide for geographic balance.
12.5 		Subd. 3.Terms; compensation; removal. The initial terms
12.6 	of members representing state agencies and the Metropolitan
12.7 	Council expire on the first Monday in January, 2007.
12.8 	Thereafter, the terms of members representing the state agencies
12.9 	and the Metropolitan Council are four years and are coterminous
12.10 	with the governor.  The terms of other members of the council
12.11 	shall be as provided in section 15.059, subdivision 2.  Members
12.12 	may serve until their successors are appointed and qualify.
12.13 	Compensation and removal of council members is as provided in
12.14 	section 15.059, subdivisions 3 and 4.  A vacancy on the council
12.15 	may be filled by the appointing authority provided in
12.16 	subdivision 1 for the remainder of the unexpired term.
12.17 		Subd. 4.Implementation plan. The Clean Water Council
12.18 	shall prepare a plan for implementation of this chapter.  The
12.19 	plan shall address general procedures and timeframes for
12.20 	implementing this chapter, and shall include a more specific
12.21 	implementation work plan for the next fiscal biennium and a
12.22 	framework for setting priorities to address impaired waters
12.23 	consistent with section 114D.45, subdivisions 2 to 7.  The
12.24 	council shall issue the first implementation plan under this
12.25 	subdivision by December 1, 2005, and shall issue a revised work
12.26 	plan by December 1 of each even-numbered year thereafter.
12.27 		Subd. 5.Recommendations on appropriation of funds. The
12.28 	Clean Water Council shall recommend to the governor the manner
12.29 	in which money from the clean water legacy account should be
12.30 	appropriated for the purposes identified in section 114D.45,
12.31 	subdivision 3.  The council's recommendations must be consistent
12.32 	with the purposes, policies, goals, and priorities in sections
12.33 	114D.05 to 114D.35, and shall allocate adequate support and
12.34 	resources to identify impaired waters, develop TMDL's, develop
12.35 	TMDL implementation plans, implement restoration of impaired
12.36 	waters, and provide assistance and incentives to prevent waters
13.1 	from becoming impaired and improve the quality of waters which
13.2 	are listed as impaired but have no approved TMDL.  The council
13.3 	must recommend methods of ensuring that awards of grants, loans,
13.4 	or other funds from the clean water legacy account specify the
13.5 	outcomes to be achieved as a result of the funding, and specify
13.6 	standards to hold the recipient accountable for achieving the
13.7 	desired outcomes.
13.8 		Subd. 6.Biennial report to legislature. By December 1
13.9 	of each even-numbered year, the council shall submit a report to
13.10 	the legislature on the activities for which money from the clean
13.11 	water legacy account has been or will be spent for the current
13.12 	biennium, and the activities for which money from the account is
13.13 	recommended to be spent in the next biennium.  The report due on
13.14 	December 1, 2014, must include an evaluation of the progress
13.15 	made through June 30, 2014, in implementing this chapter, the
13.16 	need for funding of future implementation of those sections, and
13.17 	recommendations for the sources of such funding.

13.18 	Sec. 8. [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION;
13.19 	SCIENTIFIC REVIEW; EDUCATION.
13.20 		Subdivision 1.Public and stakeholder participation.
 13.21 	Public agencies and private entities involved in the
13.22 	implementation of this chapter shall encourage participation by
13.23 	the public and stakeholders, including local citizens, land
13.24 	owners and managers, and public and private organizations, in
13.25 	the identification of impaired waters, in developing TMDL's, and
13.26 	in planning, priority setting, and implementing restoration of
13.27 	impaired waters.  In particular, the Pollution Control Agency
13.28 	shall make reasonable efforts to provide timely information to
13.29 	the public and to stakeholders about impaired waters that have
13.30 	been identified by the agency.  The agency shall seek broad and
13.31 	early public and stakeholder participation in scoping the
13.32 	activities necessary to develop a TMDL, including the scientific
13.33 	models, methods, and approaches to be used in TMDL development,
13.34 	and to implement restoration pursuant to section 114D.15,
13.35 	subdivision 7.
13.36 		Subd. 2.Expert scientific advice. The Clean Water
14.1 	Council and public agencies and private entities shall make use
14.2 	of available public and private expertise from educational,
14.3 	research, and technical organizations, including the University
14.4 	of Minnesota and other higher education institutions, to provide
14.5 	appropriate independent expert advice on models, methods, and
14.6 	approaches used in identifying impaired waters, developing
14.7 	TMDL's, and implementing prevention and restoration.
14.8 		Subd. 3.Education. The Clean Water Council shall
14.9 	develop strategies for informing, educating, and encouraging the
14.10 	participation of citizens, stakeholders, and others regarding
14.11 	the identification of impaired waters, development of TMDL's,
14.12 	development of TMDL implementation plans, and implementation of
14.13 	restoration for impaired waters.  Public agencies shall be
14.14 	responsible for implementing the strategies.

14.15 	Sec. 9. [114D.40] CLEAN WATER FEES.
14.16 		Subdivision 1.Imposition. A state clean water fee shall
14.17 	annually be imposed on all parcels of improved property within
14.18 	the state, as provided under this section, except that no fee
14.19 	shall be imposed on parcels containing improvements that are
14.20 	less than or equal to $5,000 in value.  The value determined by
14.21 	the assessor shall govern the proper amount of the fee, except
14.22 	for those properties that are valued and assessed by the
14.23 	commissioner of revenue, in which case the commissioner's value
14.24 	shall govern the proper amount of the fee.
14.25 		Subd. 2.Agricultural and residential property. For all
14.26 	improved property classified under section 273.13 as class 2
14.27 	agricultural, class 1a or 1b residential homestead, class 4b or
14.28 	4bb residential nonhomestead, or class 4c noncommercial seasonal
14.29 	residential recreational, the fee shall be $18, if the value of
14.30 	the improvement is greater than $5,000 but not greater than
14.31 	$50,000; or $36, if the value of the improvement is greater than
14.32 	$50,000.
14.33 		Subd. 3.Multiple-unit residential housing. For all
14.34 	improved property classified under section 273.13 as class 4a
14.35 	apartment property, the fee shall be $18 per unit of housing.
14.36 		Subd. 4.Business property. For all improved property
15.1 	classified under section 273.13 as class 3 commercial-industrial
15.2 	public utility, class 1c or class 4c commercial seasonal
15.3 	residential recreational, or class 5, the fee shall be:
15.4 	(i) $60, if the value of the improvement or improvements is
15.5 	greater than $5,000 but not greater than $50,000;
15.6 	(ii) $120, if the value of the improvement or improvements
15.7 	is greater than $50,000 but not greater than $500,000;
15.8 	(iii) $300, if the value of the improvement or improvements
15.9 	is greater than $500,000 but less than $1,000,000; or 
15.10 	(iv) $600, if the value of the improvement or improvements
15.11 	is greater than $1,000,000.
15.12 		Subd. 5.Exempt property. For all improved property that
15.13 	is exempt from property taxation, the fee is $60.
15.14 		Subd. 6.Assessment and collection of fee. (a) For
15.15 	taxable parcels of property, the fee shall be extended against
15.16 	the property by the county on the tax lists for the current
15.17 	year.  The fee shall be listed on the property tax statement on
15.18 	a separate line.  It shall be collected at the same time and in
15.19 	the same manner as all other property taxes.  The fee imposed
15.20 	under this section is a lien upon the property assessed to the
15.21 	same extent and for the same duration as the property taxes.
15.22 	(b) For property exempt from property taxation, the fee
15.23 	shall be assessed by the county directly on the property owner
15.24 	and shall be collected and distributed in the same manner as
15.25 	special assessments under chapter 429 are collected and
15.26 	distributed.
15.27 		Subd. 7.Settlement. The fee, less the cost to collect
15.28 	fees, shall be remitted to the state commissioner of revenue at
15.29 	the same time and in the same manner as the state general tax
15.30 	under section 275.025.  The commissioner of revenue shall
15.31 	deposit the fees collected in the clean water legacy account
15.32 	under section 114D.45.
15.33 	
EFFECTIVE DATE. This section is effective for fees
15.34 	payable in 2006 through 2015, except that if the constitutional
15.35 	amendment proposed in article 2 is adopted at the 2006 general
15.36 	election, then no fees may be imposed under this section after
16.1 	fees payable in 2007.

16.2 	Sec. 10. [114D.45] CLEAN WATER LEGACY ACCOUNT.
16.3 		Subdivision 1.Creation. The clean water legacy account
16.4 	is created as an account in the environmental fund.  Money in
16.5 	the account must only be made available for the implementation
16.6 	of this chapter and sections 446A.073 and 446A.074, without
16.7 	supplanting or taking the place of any other funds which are
16.8 	currently available or may become available from any other
16.9 	source, whether federal, state, local, or private, for
16.10 	implementation of those sections.
16.11 		Subd. 2.Sources of revenue. The following revenues must
16.12 	be deposited in the clean water legacy account:
16.13 	(1) the revenue from the clean water fees collected under
16.14 	section 114D.40; and 
16.15 	(2) interest accrued on the account.
16.16 		Subd. 3.Uses of account. Subject to appropriation by
16.17 	the legislature, the clean water legacy account may only be used
16.18 	for the following purposes:
16.19 	(1) to provide grants, loans, and technical assistance to
16.20 	public agencies and others who are participating in the process
16.21 	of identifying impaired waters, developing TMDL's and TMDL
16.22 	implementation plans, implementing restoration of impaired
16.23 	waters, and monitoring the effectiveness of restoration;
16.24 	(2) to support measures to prevent waters from becoming
16.25 	impaired and to improve the quality of waters that are listed as
16.26 	impaired but have no approved TMDL addressing the impairment;
16.27 	(3) to provide grants and loans for wastewater and
16.28 	stormwater treatment projects through the Public Facilities
16.29 	Authority;
16.30 	(4) to support the efforts of public agencies associated
16.31 	with individual sewage treatment systems and financial
16.32 	assistance for upgrading and replacing the systems; and 
16.33 	(5) to provide funds to state agencies to carry out their
16.34 	responsibilities under this chapter.

16.35 	Sec. 11. Minnesota Statutes 2004, section 115.06,
16.36 	subdivision 4, is amended to read:
17.1 		Subd. 4.Citizen monitoring of water quality.  (a) The
17.2 	agency may encourage citizen monitoring of ambient water quality
17.3 	for public waters by:
17.4 	(1) providing technical assistance to citizen and local
17.5 	group water quality monitoring efforts;
17.6 	(2) integrating citizen monitoring data into water quality
17.7 	assessments and agency programs, provided that the data adheres
17.8 	to agency quality assurance and quality control protocols; and
17.9 	(3) seeking public and private funds to:
17.10 	(i) collaboratively develop clear guidelines for water
17.11 	quality monitoring procedures and data management practices for
17.12 	specific data and information uses;
17.13 	(ii) distribute the guidelines to citizens, local
17.14 	governments, and other interested parties;
17.15 	(iii) improve and expand water quality monitoring
17.16 	activities carried out by the agency; and
17.17 	(iv) continue to improve electronic and Web access to water
17.18 	quality data and information about public waters that have been
17.19 	either fully or partially assessed.
17.20 	(b) This subdivision does not authorize a citizen to enter
17.21 	onto private property for any purpose.
17.22 	(c) By January 15 of each odd-numbered year, the
17.23 	commissioner shall report to the senate and house of
17.24 	representatives committees with jurisdiction over environmental
17.25 	policy and finance on activities under this section.
17.26 	(d) This subdivision shall sunset June 30, 2005.

17.27 	Sec. 12. Minnesota Statutes 2004, section 116.182,
17.28 	subdivision 2, is amended to read:
17.29 		Subd. 2.Applicability.  This section governs the
17.30 	commissioner's certification of projects seeking financial
17.31 	assistance under section 103F.725, subdivision 1a, 446A.07, or 
17.32 	446A.072, or 446A.075.

17.33 	Sec. 13. [446A.073] CLEAN WATER LEGACY PHOSPHORUS
17.34 	REDUCTION GRANTS.
17.35 		Subdivision 1.Creation of fund. The authority shall
17.36 	establish a clean water legacy capital improvement fund and
18.1 	shall make grants from the fund as provided in this section.
18.2 		Subd. 2.Grants. The authority shall award grants from
18.3 	the clean water legacy capital improvement fund to governmental
18.4 	units for the capital costs of wastewater treatment facility
18.5 	projects or a portion thereof that will reduce the discharge of
18.6 	total phosphorus from the facility to one milligram per liter or
18.7 	less.  A project is eligible for a grant if it meets the
18.8 	following requirements:
18.9 	(1) the applicable phosphorus discharge limit is
18.10 	incorporated in a permit issued by the agency for the wastewater
18.11 	treatment facility on or after March 28, 2000, the grantee
18.12 	agrees to comply with the applicable limit as a condition of
18.13 	receiving the grant, or the grantee made improvements to a
18.14 	wastewater treatment facility on or after March 28, 2000, that
18.15 	include infrastructure to reduce the discharge of total
18.16 	phosphorus to one milligram per liter or less;
18.17 	(2) the governmental unit has submitted a facilities plan
18.18 	for the project to the agency and a grant application to the
18.19 	authority on a form prescribed by the authority; and 
18.20 	(3) the agency has approved the facilities plan, and
18.21 	certified the eligible costs for the project to the authority.
18.22 		Subd. 3.Eligible capital costs. Eligible capital costs
18.23 	for phosphorus reduction grants under subdivision 4, paragraph
18.24 	(a), include the as-bid construction costs and engineering
18.25 	planning and design costs.  Eligible capital costs for
18.26 	phosphorus reduction grants under subdivision 4, paragraph (b),
18.27 	include the final, incurred construction, engineering, planning,
18.28 	and design costs.
18.29 		Subd. 4.Grant amounts and priorities. (a) Priority must
18.30 	be given to projects that start construction on or after July 1,
18.31 	2005.  If a facility's plan for a project is approved by the
18.32 	agency before July 1, 2009, the amount of the grant is 75
18.33 	percent of the eligible capital cost of the project.  If a
18.34 	facility's plan for a project is approved by the agency on or
18.35 	after July 1, 2009, the amount of the grant is 50 percent of the
18.36 	eligible capital cost of the project.  Priority in awarding
19.1 	grants under this paragraph must be based on the date of
19.2 	approval of the facility's plan for the project.
19.3 	(b) Projects that meet the eligibility requirements in
19.4 	subdivision 2 and have started construction before July 1, 2005,
19.5 	are eligible for grants to reimburse up to 75 percent of the
19.6 	eligible capital cost of the project, less any amounts
19.7 	previously received in grants from other sources.  Application
19.8 	for a grant under this paragraph must be submitted to the
19.9 	authority no later than June 30, 2007.  Priority for award of
19.10 	grants under this paragraph must be based on the date of agency
19.11 	approval of the facility plan.
19.12 	(c) In each fiscal year that money is available for grants,
19.13 	the authority shall first award grants under paragraph (a) to
19.14 	projects that met the eligibility requirements of subdivision 2
19.15 	by May 1 of that year.  The authority shall use any remaining
19.16 	money available that year to award grants under paragraph (b).
19.17 	Grants that have been approved but not awarded in a previous
19.18 	fiscal year carry over and must be awarded in subsequent fiscal
19.19 	years in accordance with the priorities in this paragraph.
19.20 	(d) Disbursements of grants under this section by the
19.21 	authority to recipients must be made for eligible project costs
19.22 	as incurred by the recipients, and must be made by the authority
19.23 	in accordance with the project financing agreement and
19.24 	applicable state law.
19.25 		Subd. 5.Fees. The authority may charge the grant
19.26 	recipient a fee for its administrative costs not to exceed
19.27 	one-half of one percent of the grant amount, to be paid upon
19.28 	execution of the grant agreement.

19.29 	Sec. 14. [446A.074] SMALL COMMUNITY WASTEWATER TREATMENT
19.30 	PROGRAM.
19.31 		Subdivision 1.Creation of fund. The authority shall
19.32 	establish a small community wastewater treatment fund and shall
19.33 	make loans and grants from the fund as provided in this section.
19.34 	Money in the fund is annually appropriated to the authority and
19.35 	does not lapse.  The fund shall be credited with all loan
19.36 	repayments and investment income from the fund, and servicing
20.1 	fees assessed under section 446A.04, subdivision 5.  The
20.2 	authority shall manage and administer the small community
20.3 	wastewater treatment fund, and for these purposes, may exercise
20.4 	all powers provided in this chapter.
20.5 		Subd. 2.Loans and grants. (a) The authority shall award
20.6 	loans as provided in paragraph (b) and grants as provided in
20.7 	paragraph (c) to governmental units from the small community
20.8 	wastewater treatment fund for projects to replace noncomplying
20.9 	individual sewage treatment systems with a community wastewater
20.10 	treatment system or systems meeting the requirements of section
20.11 	115.55.  A governmental unit receiving a loan or loan and grant
20.12 	from the fund shall own the community wastewater treatment
20.13 	systems built under the program and shall be responsible, either
20.14 	directly or through a contract with a private vendor, for all
20.15 	inspections, maintenance, and repairs necessary to assure proper
20.16 	operation of the systems.
20.17 	(b) Loans may be awarded for up to 100 percent of eligible
20.18 	project costs as described in this section.
20.19 	(c) When the area to be served by a project has a median
20.20 	household income below the state average median household
20.21 	income, the governmental unit may receive 50 percent of the
20.22 	funding provided under this section in the form of a grant.  An
20.23 	applicant may submit income survey data collected by an
20.24 	independent party if it believes the most recent United States
20.25 	census does not accurately reflect the median household income
20.26 	of the area to be served.
20.27 		Subd. 3.Project priority list. Governmental units
20.28 	seeking loans or loans and grants from the small community
20.29 	wastewater treatment program shall first submit a project
20.30 	proposal to the agency on a form prescribed by the agency.  A
20.31 	project proposal shall include a compliance determination for
20.32 	all individual sewage treatment systems in the project area.
20.33 	The agency shall rank project proposals on its project priority
20.34 	list used for the water pollution control revolving fund under
20.35 	section 446A.07.
20.36 		Subd. 4.Applications. Governmental units with projects
21.1 	on the project priority list shall submit applications to the
21.2 	authority on forms prescribed by the authority.  The application
21.3 	shall include:
21.4 	(1) a list of the individual sewage treatment systems
21.5 	proposed to be replaced over a period of up to three years;
21.6 	(2) a project schedule and cost estimate for each year of
21.7 	the project;
21.8 	(3) a financing plan for repayment of the loan; and 
21.9 	(4) a management plan providing for the inspection,
21.10 	maintenance, and repairs necessary to assure proper operation of
21.11 	the systems.
21.12 		Subd. 5.Awards. The authority shall award loans or
21.13 	loans and grants as provided in subdivision 2 to governmental
21.14 	units with approved applications based on their ranking on the
21.15 	agency's project priority list.  The total amount awarded shall
21.16 	be based on the estimated project costs for the portion of the
21.17 	project expected to be completed within one year, up to an
21.18 	annual maximum of $500,000.  For projects expected to take more
21.19 	than one year to complete, the authority may make a multiyear
21.20 	commitment for a period not to exceed three years, contingent on
21.21 	the future availability of funds.  Each year of a multiyear
21.22 	commitment must be funded by a separate loan or loan and grant
21.23 	agreement meeting the terms and conditions in subdivision 6.  A
21.24 	governmental unit receiving a loan or loan and grant under a
21.25 	multiyear commitment shall have priority for additional loan and
21.26 	grant funds in subsequent years.
21.27 		Subd. 6.Loan terms and conditions. Loans from the small
21.28 	community wastewater treatment fund shall comply with the
21.29 	following terms and conditions:
21.30 	(1) principal and interest payments must begin no later
21.31 	than two years after the loan is awarded;
21.32 	(2) loans shall carry an interest rate of one percent;
21.33 	(3) loans shall be fully amortized within ten years of the
21.34 	first scheduled payment or, if the loan amount exceeds $10,000
21.35 	per household, shall be fully amortized within 20 years but not
21.36 	to exceed the expected design life of the system;
22.1 	(4) a governmental unit receiving a loan must establish a
22.2 	dedicated source or sources of revenues for repayment of the
22.3 	loan and must issue a general obligation note to the authority
22.4 	for the full amount of the loan; and 
22.5 	(5) each property owner to be served by a community
22.6 	wastewater treatment system under this program must provide an
22.7 	easement to the governmental unit to allow access to the system
22.8 	for management and repairs.
22.9 		Subd. 7.Special assessment deferral. (a) A governmental
22.10 	unit receiving a loan under this section that levies special
22.11 	assessments to repay the loan may defer payment of the
22.12 	assessments under the provisions of sections 435.193 to 435.195.
22.13 	(b) A governmental unit that defers payment of special
22.14 	assessments for one or more properties under paragraph (a) may
22.15 	request deferral of that portion of the debt service on its
22.16 	loan, and the authority shall accept appropriate amendments to
22.17 	the general obligation note of the governmental unit.  If
22.18 	special assessment payments are later received from properties
22.19 	that received a deferral, the funds received shall be paid to
22.20 	the authority with the next scheduled loan payment.
22.21 		Subd. 8.Eligible costs. Eligible costs for small
22.22 	community wastewater treatment loans and grants shall include
22.23 	the costs of planning, design, construction, legal fees,
22.24 	administration, and land acquisition.
22.25 		Subd. 9.Disbursements. Loan and grant disbursements by
22.26 	the authority under this section must be made for eligible
22.27 	project costs as incurred by the recipients, and must be made in
22.28 	accordance with the project loan or grant and loan agreement and
22.29 	applicable state law.
22.30 		Subd. 10.Audits. A governmental unit receiving a loan
22.31 	under this section must annually provide to the authority for
22.32 	the term of the loan a copy of its annual independent audit or,
22.33 	if the governmental unit is not required to prepare an
22.34 	independent audit, a copy of the annual financial reporting form
22.35 	it provides to the state auditor.

22.36 	Sec. 15. [446A.075] TOTAL MAXIMUM DAILY LOAD GRANTS.
23.1 		Subdivision 1.Program established. When money is
23.2 	appropriated for grants under this program, the authority shall
23.3 	make grants to municipalities to cover up to one-half the cost
23.4 	of wastewater treatment or stormwater projects made necessary by
23.5 	wasteload reductions under total maximum daily load required by
23.6 	section 303(d) of the federal Clean Water Act, United States
23.7 	Code, title 33, section 1313(d).
23.8 		Subd. 2.Grant application. Application for a grant
23.9 	shall be made to the authority on forms prescribed by the
23.10 	authority for the total maximum daily load grant program, with
23.11 	additional information as required by the authority, including a
23.12 	project schedule and cost estimate for the work necessary to
23.13 	comply with the point source wasteload allocation.  In
23.14 	accordance with section 116.182, the Pollution Control Agency
23.15 	shall:
23.16 	(1) calculate the essential project component percentage,
23.17 	which shall be multiplied by the total project cost to determine
23.18 	the eligible project cost; and 
23.19 	(2) review and certify approved projects to the authority.
23.20 		Subd. 3.Project priorities. When money is appropriated
23.21 	for grants under this program, the authority shall reserve money
23.22 	for projects expected to start construction in the next 12
23.23 	months in the order that:
23.24 	(1) their total maximum daily load was approved by the
23.25 	United States Environmental Protection Agency;
23.26 	(2) their grant application is received by the authority;
23.27 	and 
23.28 	(3) have the greatest load reduction as determined by the
23.29 	Pollution Control Agency.  The authority shall reserve money for
23.30 	projects in an amount based on their most recent cost estimates
23.31 	submitted to the authority or the as-bid costs, whichever is
23.32 	less.
23.33 		Subd. 4.Grant approval. The authority shall make a
23.34 	grant to a municipality, as defined in section 116.182,
23.35 	subdivision 1, only after:
23.36 	(1) the commissioner of the Minnesota Pollution Control
24.1 	Agency has certified to the United States Environmental
24.2 	Protection Agency a total maximum daily load for identified
24.3 	waters of this state that includes a point source wasteload
24.4 	allocation;
24.5 	(2) the Environmental Protection Agency has approved the
24.6 	total maximum daily load;
24.7 	(3) a municipality for which money is reserved has
24.8 	submitted the as-bid costs for its wastewater treatment or
24.9 	stormwater projects to the authority;
24.10 	(4) the Pollution Control Agency has reviewed and certified
24.11 	the project to the authority; and 
24.12 	(5) the authority has determined that the additional
24.13 	financing necessary to complete the project has been committed
24.14 	from other sources.
24.15 		Subd. 5.Grant disbursement. Disbursement of a grant
24.16 	shall be made for eligible project costs as incurred by the
24.17 	municipality and in accordance with a project financing
24.18 	agreement and applicable state and federal laws and rules
24.19 	governing the payments.
24.20 		Subd. 6.Fees. The authority may charge the grant
24.21 	recipient a fee for its administrative costs not to exceed
24.22 	one-half of one percent of the grant amount, to be paid upon
24.23 	execution of the grant agreement.

24.24 	Sec. 16. Minnesota Statutes 2004, section 276.04,
24.25 	subdivision 2, is amended to read:
24.26 		Subd. 2.Contents of tax statements.  (a) The treasurer
24.27 	shall provide for the printing of the tax statements.  The
24.28 	commissioner of revenue shall prescribe the form of the property
24.29 	tax statement and its contents.  The statement must contain a
24.30 	tabulated statement of the dollar amount due to each taxing
24.31 	authority and the amount of the state tax from the parcel of
24.32 	real property for which a particular tax statement is prepared.
24.33 	The dollar amounts attributable to the county, the state tax,
24.34 	the voter approved school tax, the other local school tax, the
24.35 	township or municipality, and the total of the metropolitan
24.36 	special taxing districts as defined in section 275.065,
25.1 	subdivision 3, paragraph (i), must be separately stated.  The
25.2 	amounts due all other special taxing districts, if any, may be
25.3 	aggregated.  If the county levy under this paragraph includes an
25.4 	amount for a lake improvement district as defined under sections
25.5 	103B.501 to 103B.581, the amount attributable for that purpose
25.6 	must be separately stated from the remaining county levy
25.7 	amount.  The amount of the tax on homesteads qualifying under
25.8 	the senior citizens' property tax deferral program under chapter
25.9 	290B is the total amount of property tax before subtraction of
25.10 	the deferred property tax amount.  The amount of the tax on
25.11 	contamination value imposed under sections 270.91 to 270.98, if
25.12 	any, must also be separately stated. The fee imposed under
25.13 	section 114D.40 must be listed on a separate line following the
25.14 	special assessment line on the statement.  It shall be called
25.15 	the "State Clean Water Fee." The dollar amounts, including the
25.16 	dollar amount of any special assessments, may be rounded to the
25.17 	nearest even whole dollar.  For purposes of this section whole
25.18 	odd-numbered dollars may be adjusted to the next higher
25.19 	even-numbered dollar.  The amount of market value excluded under
25.20 	section 273.11, subdivision 16, if any, must also be listed on
25.21 	the tax statement.
25.22 	(b) The property tax statements for manufactured homes and
25.23 	sectional structures taxed as personal property shall contain
25.24 	the same information that is required on the tax statements for
25.25 	real property.
25.26 	(c) Real and personal property tax statements must contain
25.27 	the following information in the order given in this paragraph.
25.28 	The information must contain the current year tax information in
25.29 	the right column with the corresponding information for the
25.30 	previous year in a column on the left:
25.31 	(1) the property's estimated market value under section
25.32 	273.11, subdivision 1;
25.33 	(2) the property's taxable market value after reductions
25.34 	under section 273.11, subdivisions 1a and 16;
25.35 	(3) the property's gross tax, calculated by adding the
25.36 	property's total property tax to the sum of the aids enumerated
26.1 	in clause (4);
26.2 	(4) a total of the following aids:
26.3 	(i) education aids payable under chapters 122A, 123A, 123B,
26.4 	124D, 125A, 126C, and 127A;
26.5 	(ii) local government aids for cities, towns, and counties
26.6 	under chapter 477A; and
26.7 	(iii) disparity reduction aid under section 273.1398;
26.8 	(5) for homestead residential and agricultural properties,
26.9 	the credits under section 273.1384;
26.10 	(6) any credits received under sections 273.119; 273.123;
26.11 	273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
26.12 	473H.10, except that the amount of credit received under section
26.13 	273.135 must be separately stated and identified as "taconite
26.14 	tax relief"; and
26.15 	(7) the net tax payable in the manner required in paragraph
26.16 	(a).
26.17 	(d) If the county uses envelopes for mailing property tax
26.18 	statements and if the county agrees, a taxing district may
26.19 	include a notice with the property tax statement notifying
26.20 	taxpayers when the taxing district will begin its budget
26.21 	deliberations for the current year, and encouraging taxpayers to
26.22 	attend the hearings.  If the county allows notices to be
26.23 	included in the envelope containing the property tax statement,
26.24 	and if more than one taxing district relative to a given
26.25 	property decides to include a notice with the tax statement, the
26.26 	county treasurer or auditor must coordinate the process and may
26.27 	combine the information on a single announcement.
26.28 	The commissioner of revenue shall certify to the county
26.29 	auditor the actual or estimated aids enumerated in clause (4)
26.30 	that local governments will receive in the following year.  The
26.31 	commissioner must certify this amount by January 1 of each year.

26.32 	Sec. 17. Minnesota Statutes 2004, section 276.112, is
26.33 	amended to read:
26.34 	276.112 STATE PROPERTY TAXES; COUNTY TREASURER.
26.35 	On or before January 25 each year, for the period ending
26.36 	December 31 of the prior year, and on or before June 29 each
27.1 	year, for the period ending on the most recent settlement day
27.2 	determined in section 276.09, and on or before December 2 each
27.3 	year, for the period ending November 20, the county treasurer
27.4 	must make full settlement with the county auditor according to
27.5 	sections 276.09, 276.10, and 276.111 for all receipts of state
27.6 	property taxes levied under section 275.025, and the
27.7 	state-imposed fee under section 114D.40,and must transmit those
27.8 	receipts to the commissioner of revenue by electronic means.

27.9 	Sec. 18. Minnesota Statutes 2004, section 290A.03,
27.10 	subdivision 11, is amended to read:
27.11 		Subd. 11.Rent constituting property taxes.  "Rent
27.12 	constituting property taxes" means (i) 19 percent of the gross
27.13 	rent actually paid in cash, or its equivalent, or the portion of
27.14 	rent paid in lieu of property taxes, in any calendar year by a
27.15 	claimant for the right of occupancy of the claimant's Minnesota
27.16 	homestead in the calendar year, and which rent constitutes the
27.17 	basis, in the succeeding calendar year of a claim for relief
27.18 	under this chapter by the claimant; plus (ii) the amount of the
27.19 	state clean water fee imposed on the rental unit under section
27.20 	114D.40, allocated to multiple renters, if appropriate, as
27.21 	prescribed under subdivision 8, paragraph (f).
27.22 	
EFFECTIVE DATE. This section is effective for claims in
27.23 	2007 and thereafter based on rent and fees paid in 2006 and
27.24 	thereafter.

27.25 	Sec. 19. Minnesota Statutes 2004, section 290A.03,
27.26 	subdivision 13, is amended to read:
27.27 		Subd. 13.Property taxes payable.  "Property taxes
27.28 	payable" means the property tax plus the state clean water fee
27.29 	imposed under section 114D.40exclusive of special assessments,
27.30 	penalties, and interest payable on a claimant's homestead after
27.31 	deductions made under sections 273.135, 273.1384, 273.1391,
27.32 	273.42, subdivision 2, and any other state paid property tax
27.33 	credits in any calendar year, and after any refund claimed and
27.34 	allowable under section 290A.04, subdivision 2h, that is first
27.35 	payable in the year that the property tax is payable.  In the
27.36 	case of a claimant who makes ground lease payments, "property
28.1 	taxes payable" includes the amount of the payments directly
28.2 	attributable to the property taxes assessed against the parcel
28.3 	on which the house is located.  No apportionment or reduction of
28.4 	the "property taxes payable" shall be required for the use of a
28.5 	portion of the claimant's homestead for a business purpose if
28.6 	the claimant does not deduct any business depreciation expenses
28.7 	for the use of a portion of the homestead in the determination
28.8 	of federal adjusted gross income.  For homesteads which are
28.9 	manufactured homes as defined in section 273.125, subdivision 8,
28.10 	and for homesteads which are park trailers taxed as manufactured
28.11 	homes under section 168.012, subdivision 9, "property taxes
28.12 	payable" shall also include 19 percent of the gross rent paid in
28.13 	the preceding year for the site on which the homestead is
28.14 	located.  When a homestead is owned by two or more persons as
28.15 	joint tenants or tenants in common, such tenants shall determine
28.16 	between them which tenant may claim the property taxes payable
28.17 	on the homestead.  If they are unable to agree, the matter shall
28.18 	be referred to the commissioner of revenue whose decision shall
28.19 	be final.  Property taxes are considered payable in the year
28.20 	prescribed by law for payment of the taxes.
28.21 	In the case of a claim relating to "property taxes
28.22 	payable," the claimant must have owned and occupied the
28.23 	homestead on January 2 of the year in which the tax is payable
28.24 	and (i) the property must have been classified as homestead
28.25 	property pursuant to section 273.124, on or before December 15
28.26 	of the assessment year to which the "property taxes payable"
28.27 	relate; or (ii) the claimant must provide documentation from the
28.28 	local assessor that application for homestead classification has
28.29 	been made on or before December 15 of the year in which the
28.30 	"property taxes payable" were payable and that the assessor has
28.31 	approved the application.
28.32 	
EFFECTIVE DATE. This section is effective for claims in
28.33 	2006 and thereafter based on taxes payable in 2006 and
28.34 	thereafter.

28.35 	Sec. 20. APPROPRIATIONS.
 28.36 		Subdivision 1.General provisions. The appropriations in
29.1 	this section are from the environmental fund and are available
29.2 	for the fiscal years ending June 30, 2006, and June 30, 2007.
29.3 	Unless otherwise specified in this section, these appropriations
29.4 	do not cancel and remain available until June 30, 2007.
29.5 	Appropriations in this section that are encumbered under
29.6 	contract, including grant contract, on or before June 30, 2007,
29.7 	are available until June 30, 2009.
29.8 		Subd. 2.Department of revenue; fee collection
29.9 	costs. $38,000 in fiscal year 2006 and $31,000 in fiscal year
29.10 	2007 are appropriated to the Department of Revenue to pay the
29.11 	costs of collection and administration of the clean water fees
29.12 	imposed in Minnesota Statutes, section 114D.40.
29.13 		Subd. 3.Pollution control agency. The following amounts
29.14 	are appropriated to the Pollution Control Agency for the
29.15 	purposes stated:
29.16 	(1) $1,000,000 in fiscal year 2006 is to assist counties in
29.17 	developing the list required under Minnesota Statutes, section
29.18 	114D.40, subdivision 4, paragraph (e), of persons subject to
29.19 	clean water fees under Minnesota Statutes, section 114D.40,
29.20 	subdivision 3, paragraphs (f) and (g);
29.21 	(2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal
29.22 	year 2007 are for statewide assessment of surface water quality
29.23 	and trends; of these amounts, up to $1,010,000 in fiscal year
29.24 	2006 and $1,960,000 in fiscal year 2007 are available for grants
29.25 	or contracts to support citizen monitoring of surface waters;
29.26 	and 
29.27 	(3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal
29.28 	year 2007 are to develop TMDL's for waters listed on the United
29.29 	States Environmental Protection Agency approved 2004 impaired
29.30 	waters list; of this appropriation, up to $390,000 in fiscal
29.31 	year 2006 and $1,140,000 in fiscal year 2007 are available for
29.32 	grants or contracts to develop TMDL's.
29.33 		Subd. 4.Agriculture department. The following amounts
29.34 	are appropriated to the Department of Agriculture for the
29.35 	purposes stated:
29.36 	(1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal
30.1 	year 2007 are for agricultural best management practices
30.2 	low-interest loans to producers and rural landowners and these
30.3 	funds remain available until expended; of these amounts,
30.4 	$200,000 in fiscal year 2006 and $2,100,000 in fiscal year 2007
30.5 	are available for pass-through to local governments and lenders
30.6 	for low-interest loans;
30.7 	(2) $350,000 in fiscal year 2006 and $800,000 in fiscal
30.8 	year 2007 are to expand technical assistance to producers and
30.9 	conservation professionals on nutrient and pasture management;
30.10 	target practices to sources of water impairments; coordinate
30.11 	federal and state farm conservation programs to fully utilize
30.12 	federal conservation funds; and expand conservation planning
30.13 	assistance for producers; of these amounts, $50,000 in fiscal
30.14 	year 2006 and $210,000 in fiscal year 2007 are available for
30.15 	grants or contracts to develop nutrient and conservation
30.16 	planning assistance information materials; and 
30.17 	(3) $100,000 in fiscal year 2006 and $800,000 in fiscal
30.18 	year 2007 are for research, evaluation, and effectiveness
30.19 	monitoring of agricultural practices in restoring impaired
30.20 	waters; of these amounts, $600,000 in fiscal year 2007 is
30.21 	available for grants or contracts for research, evaluations, and
30.22 	effectiveness monitoring of agricultural practices in restoring
30.23 	impaired waters, including on-farm demonstrations.
30.24 		Subd. 5.Board of water and soil resources. The
30.25 	following amounts are appropriated to the Board of Water and
30.26 	Soil Resources for restoration and prevention actions as
30.27 	described in Minnesota Statutes, section 114D.20, subdivisions 6
30.28 	and 7:
30.29 	(1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal
30.30 	year 2007 are for targeted nonpoint restoration cost-share and
30.31 	incentive payments; of these amounts, up to $450,000 in fiscal
30.32 	year 2006 and $5,450,000 in fiscal year 2007 are available for
30.33 	grants to soil and water conservation districts through the
30.34 	state cost-share program authorized under Minnesota Statutes,
30.35 	section 103C.501;
30.36 	(2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal
31.1 	year 2007 are for targeted nonpoint restoration technical,
31.2 	compliance, and engineering assistance activities; of these
31.3 	amounts, up to $412,000 in fiscal year 2006 and $3,250,000 in
31.4 	fiscal year 2007 are available for grants to soil and water
31.5 	conservation districts, watershed management organizations, or
31.6 	counties to support nonpoint restoration implementation
31.7 	activities;
31.8 	(3) $200,000 in fiscal year 2007 is for reporting and
31.9 	evaluation of applied soil and water conservation practices;
31.10 	(4) $2,400,000 in fiscal year 2007 is for grants to
31.11 	counties for implementation of county individual sewage
31.12 	treatment systems programs through the local water resources
31.13 	protection and management program under Minnesota Statutes,
31.14 	section 103B.3369;
31.15 	(5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal
31.16 	year 2007 are for base and challenge grants to support nonpoint
31.17 	source protection activities related to lake and river
31.18 	protection and management through the local water resources
31.19 	protection and management program under Minnesota Statutes,
31.20 	section 103B.3369; and 
31.21 	(6) $2,400,000 in fiscal year 2007 is for grants to soil
31.22 	and water conservation districts for streambank, stream channel,
31.23 	lakeshore, and roadside protection and restoration projects
31.24 	through the state cost-share program under Minnesota Statutes,
31.25 	section 103C.501.
31.26 		Subd. 6.Department of natural resources. The following
31.27 	amounts are appropriated to the Department of Natural Resources
31.28 	for the purposes stated:
31.29 	(1) $280,000 in fiscal year 2006 and $430,000 in fiscal
31.30 	year 2007 are for statewide assessment of surface water quality
31.31 	and trends; and 
31.32 	(2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal
31.33 	year 2007 are for restoration of impaired waters and actions to
31.34 	prevent waters from becoming impaired; of these amounts, up to
31.35 	$1,700,000 in fiscal year 2007 is available for grants and
31.36 	contracts for forest stewardship planning and implementation,
32.1 	and for research, compliance, and monitoring.
32.2 		Subd. 7.Public facilities authority. $4,400,000 in
32.3 	fiscal year 2006 and $44,015,000 in fiscal year 2007 are
32.4 	appropriated to the Public Facilities Authority; of these
32.5 	amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in
32.6 	fiscal year 2007 are to the clean water legacy capital
32.7 	improvements fund for grants under Minnesota Statutes, section
32.8 	446A.073; $4,582,000 in fiscal year 2007 is to the small
32.9 	community wastewater treatment fund for loans and grants under
32.10 	Minnesota Statutes, section 446A.074; and $22,433,000 in fiscal
32.11 	year 2007 is to the water pollution control revolving fund under
32.12 	Minnesota Statutes, section 446.07, for wastewater treatment and
32.13 	stormwater projects, and for total maximum daily load grants
32.14 	under Minnesota Statutes, section 446A.075.  Funds appropriated
32.15 	under this subdivision do not cancel and are available until
32.16 	expended.

32.17 	Sec. 21. EFFECTIVE DATE.
 32.18 	Sections 1 to 15 are effective the day following final
32.19 	enactment.  Section 20 is effective July 1, 2005.

32.20 	ARTICLE 2
32.21 	CONSTITUTIONAL AMENDMENT

32.22 	Section 1. CONSTITUTIONAL AMENDMENT.
 32.23 	An amendment to the Minnesota Constitution is proposed to
32.24 	the people.  If the amendment is adopted, a section will be
32.25 	added to article XI, to read:
32.26 	Sec. 15.  Beginning July 1, 2007, until June 30, 2016, the
32.27 	state sales and use tax receipts equal to the state sales and
32.28 	use tax of one-eighth of one percent on sales and uses taxable
32.29 	under the general state sales and use tax law, plus penalties
32.30 	and interest and reduced by any refunds, are dedicated to the
32.31 	assessment, protection and restoration of the state's lakes,
32.32 	rivers, streams, wetlands, and groundwater.  The money dedicated
32.33 	under this section shall be appropriated by law.

32.34 	Sec. 2. SUBMISSION TO VOTERS.
 32.35 	The proposed amendment shall be submitted to the people at
32.36 	the 2006 general election.  The question submitted shall be:
33.1 	"Shall the Minnesota Constitution be amended to provide
33.2 	funding beginning July 1, 2007, to protect and restore the
33.3 	state's lakes, rivers, streams, wetlands, and groundwater by
33.4 	dedicating additional sales and use tax receipts equal to the
33.5 	state sales and use tax of one-eighth of one percent on taxable
33.6 	sales until the year 2016? 
33.7 	Yes .......
33.8 	                                   No ........" 

33.9 	Sec. 3. EFFECTIVE DATE.
 33.10 	Sections 1 and 2 apply to sales and uses occurring after
33.11 	June 30, 2007.

33.12 	ARTICLE 3
33.13 	CONFORMING CHANGES

33.14 	Section 1. [114D.45] CLEAN WATER ACCOUNT.
33.15 	The clean water legacy account in the environmental fund is
33.16 	established in the Minnesota Constitution, article XI, section
33.17 	15.  All money earned by the clean water legacy account must be
33.18 	credited to the account in the environmental fund.

33.19 	Sec. 2. Minnesota Statutes 2004, section 297A.62,
33.20 	subdivision 1, is amended to read:
33.21 		Subdivision 1.Generally.  Except as otherwise provided
33.22 	in subdivision 2 or 3 or in this chapter, a sales tax of 6.5
33.23 	percent is imposed on the gross receipts from retail sales as
33.24 	defined in section 297A.61, subdivision 4, made in this state or
33.25 	to a destination in this state by a person who is required to
33.26 	have or voluntarily obtains a permit under section 297A.83,
33.27 	subdivision 1. After June 30, 2007, an additional sales tax of
33.28 	0.125 percent is imposed under article XI, section 15, of the
33.29 	Minnesota Constitution, for the purposes of clean water.

33.30 	Sec. 3. Minnesota Statutes 2004, section 297A.94, is
33.31 	amended to read:
33.32 	297A.94 DEPOSIT OF REVENUES.
33.33 	(a) Except as provided in this section, the commissioner
33.34 	shall deposit the revenues, including interest and penalties,
33.35 	derived from the taxes imposed by this chapter in the state
33.36 	treasury and credit them to the general fund.
34.1 	(b) The commissioner shall deposit taxes in the Minnesota
34.2 	agricultural and economic account in the special revenue fund if:
34.3 	(1) the taxes are derived from sales and use of property
34.4 	and services purchased for the construction and operation of an
34.5 	agricultural resource project; and
34.6 	(2) the purchase was made on or after the date on which a
34.7 	conditional commitment was made for a loan guaranty for the
34.8 	project under section 41A.04, subdivision 3.
34.9 	The commissioner of finance shall certify to the commissioner
34.10 	the date on which the project received the conditional
34.11 	commitment.  The amount deposited in the loan guaranty account
34.12 	must be reduced by any refunds and by the costs incurred by the
34.13 	Department of Revenue to administer and enforce the assessment
34.14 	and collection of the taxes.
34.15 	(c) The commissioner shall deposit the revenues, including
34.16 	interest and penalties, derived from the taxes imposed on sales
34.17 	and purchases included in section 297A.61, subdivision 3,
34.18 	paragraph (g), clauses (1) and (4), in the state treasury, and
34.19 	credit them as follows:
34.20 	(1) first to the general obligation special tax bond debt
34.21 	service account in each fiscal year the amount required by
34.22 	section 16A.661, subdivision 3, paragraph (b); and
34.23 	(2) after the requirements of clause (1) have been met, the
34.24 	balance to the general fund.
34.25 	(d) The commissioner shall deposit the revenues, including
34.26 	interest and penalties, collected under section 297A.64,
34.27 	subdivision 5, in the state treasury and credit them to the
34.28 	general fund.  By July 15 of each year the commissioner shall
34.29 	transfer to the highway user tax distribution fund an amount
34.30 	equal to the excess fees collected under section 297A.64,
34.31 	subdivision 5, for the previous calendar year.
34.32 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002
34.33 	and 2003, 87 percent; and for fiscal year 2004 and thereafter,
34.34 	72.43 percent of the revenues, including interest and penalties,
34.35 	transmitted to the commissioner under section 297A.65, must be
34.36 	deposited by the commissioner in the state treasury as follows:
35.1 	(1) 50 percent of the receipts must be deposited in the
35.2 	heritage enhancement account in the game and fish fund, and may
35.3 	be spent only on activities that improve, enhance, or protect
35.4 	fish and wildlife resources, including conservation,
35.5 	restoration, and enhancement of land, water, and other natural
35.6 	resources of the state;
35.7 	(2) 22.5 percent of the receipts must be deposited in the
35.8 	natural resources fund, and may be spent only for state parks
35.9 	and trails;
35.10 	(3) 22.5 percent of the receipts must be deposited in the
35.11 	natural resources fund, and may be spent only on metropolitan
35.12 	park and trail grants;
35.13 	(4) three percent of the receipts must be deposited in the
35.14 	natural resources fund, and may be spent only on local trail
35.15 	grants; and
35.16 	(5) two percent of the receipts must be deposited in the
35.17 	natural resources fund, and may be spent only for the Minnesota
35.18 	Zoological Garden, the Como Park Zoo and Conservatory, and the
35.19 	Duluth Zoo.
35.20 	(f) The revenue dedicated under paragraph (e) may not be
35.21 	used as a substitute for traditional sources of funding for the
35.22 	purposes specified, but the dedicated revenue shall supplement
35.23 	traditional sources of funding for those purposes.  Land
35.24 	acquired with money deposited in the game and fish fund under
35.25 	paragraph (e) must be open to public hunting and fishing during
35.26 	the open season, except that in aquatic management areas or on
35.27 	lands where angling easements have been acquired, fishing may be
35.28 	prohibited during certain times of the year and hunting may be
35.29 	prohibited.  At least 87 percent of the money deposited in the
35.30 	game and fish fund for improvement, enhancement, or protection
35.31 	of fish and wildlife resources under paragraph (e) must be
35.32 	allocated for field operations.
35.33 	(g) The commissioner shall deposit the sales tax revenue
35.34 	collected under article XI, section 15, of the Minnesota
35.35 	Constitution, in the state treasury for deposit in the clean
35.36 	water legacy account.

36.1 	Sec. 4. EFFECTIVE DATE.
 36.2 	This article is effective November 15, 2006, if the
36.3 	constitutional amendment proposed in article 2 is adopted by the
36.4 	voters.